By Emily Horton

FTSE rises as pound falls on report crucial Brexit vote canceled

European markets traded lower on Monday, as investors failed to shake a hangover from last week's selloff in the U.S., with signals of slowing growth in France adding to the worries. Among individual stocks, BASF AG tumbled on a profit warning.

A decline for sterling gave the FTSE 100 a lift after a report a key parliamentary vote on Brexit has been canceled.

What are markets doing?

The Stoxx Europe 600 was down 0.7% to 343.04, after closing down 3.37% last week, the biggest percentage decline since the week ending October 12 2018.

Germany's DAX 30 dipped by 0.5% to 10,735.94, while France's CAC 40 eased 0.5% to 4,786.15.

The U.K.'s FTSE 100 rose 0.1% to 6,785.86. Italy's FTSE MIB Italy index was off 0.5% to 18,647.94.

The euro rose to $1.1413, from $1.1387 late Friday in New York, while the pound tumbled to $1.2668 from $1.2731 late on Friday in New York.

What is driving the market?

Sterling slid after a midday report from Bloomberg that U.K. Prime Minister May would cancel a key parliamentary vote (http://www.marketwatch.com/story/british-pound-falls-on-report-uks-may-calling-off-brexit-vote-2018-12-10) expected Tuesday on her Brexit plan for and reschedule it. A stronger pound can weigh on the FTSE 100, as the index's multinational companies generate most of their sales in other currencies, and the reverse works true as well.

Earlier Monday, the European Court of Justice ruled on Monday that the U.K. could officially cancel Brexit without the permission of the other 27 EU member states.

On the economic front, Germany's Federal Statistical Office released showing that the county's trade surplus with the rest of the world narrowed (http://www.marketwatch.com/story/germanys-trade-surplus-narrows-in-october-2018-12-10). Blaming protests across the country that have cut into industrial production for a number of sectors, the Bank of France said the French economy will grow slower (http://www.marketwatch.com/story/french-protests-blamed-for-cut-in-growth-forecast-2018-12-10) than originally projected.

Global growth concerns and worries that the U.S. and China will struggle to meet common ground on trade were also hanging over stocks, with U.S. stock futures lower, while weaker oil prices also weighed on heavyweight energy companies.

What stocks are active?

Heavyweight banking stocks were in the red, with Banco Santander SA (SAN) (SAN.MC) and UBS Group AG (UBS) down 1% each.

Major oil companies fell as crude prices came under pressure, with Royal Dutch Shell PLC (RDSA.LN)(RDSA.LN) down 1.3% and Total SA (TOT) (TOT) off 0.9%.

Shares of BASF SE (BAS.XE) slid by nearly 5%, after the German chemical group issued a profit warning (http://www.marketwatch.com/story/basf-shares-drop-after-profit-warning-2018-12-10-44851426) on Monday.

Pharmaceutical stocks were moving higher, with AstraZeneca PLC (AZN.LN) up just over 1% and GlaxoSmithKline PLC (GSK.LN) up 1.6%. German health care company Fresenius SE & Co. KGaA (FRE.XE) up 4.2%.

 

(END) Dow Jones Newswires

December 10, 2018 07:49 ET (12:49 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Feb 2024 to Mar 2024 Click Here for more FTSE 100 Charts.
FTSE 100
Index Chart
From Mar 2023 to Mar 2024 Click Here for more FTSE 100 Charts.